PIPELINE OFFERS VIRTUAL
NEIGHBORHOODS THROUGHOUT THE US

HERNDON, VA, October 3, 1995--Pipeline,
a Performance Systems International (PSINet), Inc. (NASDAQ: PSIX)
company, today announced plans to develop "virtual neighborhoods"
across the U.S. featuring local content and discussion groups
focused on major metropolitan areas.

The newly-created local content and online communities will be incorporated into the award-winning national Internet online service. This ambitious strategy makes Pipeline the first service to establish a local online presence in multiple cities nationwide.

The model for the local content
service is Pipeline\NY, which since 1993 has offered subscribers
ground-breaking Internet access software and has fostered a vibrant
online community with news, information and discussion about New
York. PSINet purchased Pipeline\NY last February and launched
it as a nationwide service in July.

Pipeline is committed to launch the
local service in four cities by the end of the year. Boston,
Atlanta, Dallas, Washington, D.C., Los Angeles, Chicago and San
Francisco will be among the cities targeted. Additional areas
with a high concentration of Internet or online users will be
considered for the service in the future.

"Until now, there's been no
broad national effort to offer true local content or to cultivate
the sense of local community people appreciate," said Kurt
Baumann, vice president of consumer services for PSINet. "Instant
access to worldwide information has become a way of life for millions
of people, but everyone still wants local scores, local event
listings and a sense that they have a home on the Internet-that
is what we will provide."

Pipeline will offer subscribers
in the designated metropolitan areas online content consisting
of original local information and news. The service will also
introduce thought-provoking newsgroup discussions facilitated
by Pipeline moderators, with special appearances by newsmakers
and celebrities. In creating this content, Pipeline will draw
on the experiences of Pipeline\NY, the largest New York City-based
Internet access provider.

"We're not taking a national
online service and trying to turn it into a collection of local
content areas," said Edward Nadeau, General Manager of Pipeline\NY.
"We want to build online communities from the ground up just
like we have here in New York. Our service reflects the culture
and character of the tri-state metropolitan area and we hope to
replicate this atmosphere for customers in other cities."

Virtual neighborhood editors will
eventually be located in the major cities served by Pipeline providing
an important local presence and a physical, as well as creative,
connection to that city.

In New York, the local content currently
includes discussion groups that range from politics, the arts
and lifestyles to food, business and whimsical gossip. Pipeline\NY
also provides a variety of entertainment, restaurant, employment,
government and sports listings as well as wire services that focus
on news about New York and custom applications enabling subscribers
to take online classes at the New School For Social Research.

Last August, Pipeline\NY joined
forces with the Authors Guild, one of the nation's largest organizations
representing writers, to host a discussion group for the New York
area's many writers. The online chats feature appearances by
members of The Authors Guild, whose board of directors includes
such well-known authors as Mary Pope Osborne, Scott F. Turow,
Michael Crichton and Mary Higgins Clark.

Pipeline's current local content
will be expanded to include information on local cultural institutions,
concerts, sports teams, employment listings, real estate listings,
online town halls, and online curriculum from local educational
institutions. The local content service will seek suggestions
for additional content from online communities.

The local content service will be
available at no extra charge above the current flat monthly fee
of $19.95.

"Other online services charge
by the hour for Internet access and proprietary information,"
Baumann said. "The Internet offers far more information
than any commercial service can. Pipeline will offer original
content, yet we will still maintain a flat rate for unlimited,
unrestricted full Internet access."

Pipeline recently announced that
Winsock compliance and a personal home page authoring tool will
be added to the service later this month. These two additions
will allow subscribers to select additional Internet applications
including popular web browsers and create their own personal home
pages.
Headquartered in Herndon, VA,
with an office in New York City, Pipeline is the nation's first
Internet online services that offers unlimited Internet access
24 hours a day, 7 days a week at a flat rate ($19.95 per month).
Pipeline software is available free by calling 1-800-453-PIPE
(7473). Pipeline was recently awarded the "Editors' Choice"
by PC Magazine as an excellent package for new users.

PSINet has defined industry standards
and is a leader in technological innovation and new service development.
The company has its headquarters in Herndon, Va., with sales
and service offices across the U.S., Cambridge, England and Tokyo,
Japan. PSINet is a publicly-held company trading under the PSIX
symbol on the NASDAQ exchange. Further product availability and
pricing information can be obtained by calling 703/904-4100; through
PSINet's Web site at http://www.psi.net; or by sending an e-mail
request to info@psi.com.

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